I'm considering a rollover from an ESOP into an Ira(non-deductible) offered by one of the online discount brokers.I already have a non-ded Ira invested in mutual funds. I also want to rollover this acct into the new online acct. I want to be able to self-direct this new acct. One reason for doing this is that the dividends come directly to me & are taxed & I would the dividends reinvested.Does this sound like a Fool thing to do & are there any hidden dangers? Thanks! CFrank

<<I'm considering a rollover from an ESOP into an Ira(non-deductible) offered by one of the online discount brokers. I already have a non-ded Ira invested in mutual funds. I also want to rollover this acct into the new online acct. I want to be able to self-direct this new acct. One reason for doing this is that the dividends come directly to me & are taxed & I would the dividends reinvested. Does this sound like a Fool thing to do & are there any hidden dangers?>>

I see no reason why this approach isn't reasonable assuming you are eligible to transfer your vested ESOP shares. Eligibility normally occurs on termination of employment or retirement, but some shares could be transferred at age 55 regardless of your employment status. Also, you should be aware that the dividends probably won't be reinvested in the traditional sense. Instead, they would accumulate in the broker's money market sweep account as part of the IRA until you get around to purchasing new shares with the available cash.